the 20-day SMA acted as support yesterday as we were expecting and there has been a small rebound out of it. Price, however, just does not have the strength to start a new leg higher from here and I expect a continuation downwards which could/should bring price lower into the 1.2780 or even 1.2740 area.
A that point, we could witness a more decisive bounce (next week) into the 1.2835-50 area. This could be a very good short entry with the 20-day SMA acting as resistance this time, a high-probability trade. This could be the last leg downwards that would bring price into the 1.2630 area, as expected. Let’s don’t get ahead of ourselves, though, and let’s see what the market gives.
Have a great day!